If a Company Allows Division Managers to Negotiate a Cost-Based

question 97

True/False

If a company allows division managers to negotiate a cost-based transfer price,it is better to use actual costs rather than standard costs.Otherwise,the selling division has no motivation to control costs.

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Definitions:

Viscous liquid

A thick and sticky fluid that has a high resistance to flow compared to a less viscous liquid.

Motor neurons

Nerve cells that transmit impulses from the spinal cord or brain to muscles or glands, enabling movements and actions.

Electrolytes

Minerals in the body that have an electric charge, such as sodium, potassium, and calcium, vital for various bodily functions including muscle contractions and the maintenance of fluid balance.

Nerve impulses

Bioelectric signals that transmit information along nerve fibers, facilitating communication within the nervous system.